XRP (XRP) Plunges to $1.27 as Geopolitical Tensions Spark Massive Crypto Liquidations

Key Highlights

• XRP plunged to $1.2723, marking its weakest performance since February 2025
• Nearly $1 billion in cryptocurrency positions liquidated following US military strikes on Iranian targets
• Critical $1.30 support zone breached amid significant trading volume
• Spot XRP ETF activity flatlined with zero net flows recorded on Wednesday
• Technical analysts identify $1.10 as critical downside target if current support fails to hold

XRP experienced a dramatic downturn on May 28, plummeting to $1.2723 — a price point not witnessed since February. The sharp decline followed US military operations targeting an Iranian installation near the strategically important Strait of Hormuz, sending shockwaves through global financial markets and precipitating widespread cryptocurrency liquidations.

The military action catalyzed approximately $1 billion in forced liquidations of leveraged cryptocurrency positions over a 24-hour period. Long positions accounted for an overwhelming 93% of these losses, with Bitcoin bearing the brunt at $386 million in liquidations, while Ethereum followed with $246 million. XRP registered a 3.6% decline during the trading session.

Cryptocurrency market observer Cheds Trading shared on X that $XRP was “bleeding into daily range lows,” effectively summarizing market sentiment as selling pressure overwhelmed support levels that had remained intact for several months.

Critical Support Level Compromised

XRP descended from $1.3267 to an intraday low of $1.2931 throughout the trading period. The most significant price deterioration occurred approximately at 23:00 UTC on May 27, during which 64 million XRP changed hands as the asset breached the $1.3150 threshold.

The $1.30 price level had functioned as a reliable support foundation for several months. Its breakdown accompanied by elevated volume signals a potential near-term transformation in market psychology. XRP currently trades beneath all major moving averages, while both the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators display bearish momentum.

Market technicians are monitoring a symmetrical triangle formation that has constrained XRP’s price action since early 2025. The digital asset now hovers near the lower boundary of this technical pattern. Should the $1.30 level prove unrecoverable, analysts caution of potential retracement toward the mid-$1.20 range or potentially as low as $1.10.

ETF Appetite Diminishes

Spot XRP exchange-traded funds recorded neither inflows nor outflows on Wednesday. While this neutral positioning outperformed Bitcoin, which experienced $700 million in outflows during the identical timeframe, it nevertheless indicates cooling institutional demand.

On a monthly basis, XRP ETFs are positioned to achieve their strongest performance of the year, accumulating more than $118 million in assets. Their previous peak occurred in November of last year, when they attracted $666 million in new capital.

Blockchain analytics reveal XRP continues migrating away from centralized exchanges, a trend some market participants interpret as evidence of long-term accumulation strategies.

Ripple’s RLUSD stablecoin has surpassed $1.8 billion in total assets, securing its position as the third-largest regulated stablecoin. The XRP Ledger’s 30-day adjusted transaction volume reached $11.8 billion.

XRP retreated from its May 14 peak of $1.5485 to $1.28 as of Thursday morning. Technical analysts are monitoring $1.12, corresponding to its February trough, as the subsequent support threshold. Overhead resistance is concentrated within the $1.33–$1.36 corridor.

The post XRP (XRP) Plunges to $1.27 as Geopolitical Tensions Spark Massive Crypto Liquidations appeared first on Blockonomi.